Ernest works for a clothing manufacturer as a dress designer. During 2022, he travels to New York City to attend five days of fashion shows and then spends three days sightseeing. His expenses are as follows: Airfare $1,800 Lodging (8 nights) 2,000 Meals at local restaurants (8 days) 1,440 Airport Uber ride 100 Assume lodging/meals are the same amounts for the business and personal portion of the trip ($250 per day for lodging and $180 per day for meals). He has proper substantiation for each item. As an employee and assuming no reimbursement, what amount is deductible on his personal return in 2022? Show detail for each item. If he was an independent contractor, what amount would be deductible on his personal return in 2022? Show detail for each item. For item b: is this amount FOR or FROM AGI?
Ernest works for a clothing manufacturer as a dress designer. During 2022, he travels to New York City to attend five days of fashion shows and then spends three days sightseeing.
His expenses are as follows:
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Assume lodging/meals are the same amounts for the business and personal portion of the trip ($250 per day for lodging and $180 per day for meals). He has proper substantiation for each item.
- As an employee and assuming no reimbursement, what amount is deductible on his personal return in 2022? Show detail for each item.
- If he was an independent contractor, what amount would be deductible on his personal return in 2022? Show detail for each item.
- For item b: is this amount FOR or FROM AGI?
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a. -0- Because Ernest is an employee, these expenses are miscellaneous itemized deductions and from 2018 through 2025 are not deductible.(would you agree?)
b. The business portion of the meals ($900) is not subject to the 50% limit in 2022 (or 2021) since the meals were at local restaurants. (Covid Relief) Agree?
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